Wednesday, March 28, 2012

Alberta to receive 1.2 trillion in oil royalties over next 35 years

At least that is the amount calculated by the Canadian Energy Research Institute. At the same time royalties increase so do emissions from oil and gas extraction. Emission amounts are expected to triple over the same time period. See this article.

No doubt Albertans will welcome these projections. The province should be able to have budget surpluses and low taxes. The Institute predicts that oil production will rise from the present 1.6 million barrels a day to 5.4 million barrels a day by 2045.

The report of the Institute notes:“While technological innovation within the oil sands industry (in addition to carbon capture and storage) is expected to help reduce these emissions, the emissions are still expected to rise,” Carbon emissions are projected to increase from 45 million tonnes annually to 159 million tonnes by 2045.

Alberta has roughly 170 million barrels of proven oil reserves. This is the world's third largest supply. Only Saudi Arabia and Venezuela have greater reserves. For much more see the full article.

These projections are far into the future. One would hope that by then there would be a much greater proportion of our energy needs supplied by alternative sources. Perhaps by 2045 extraction of oil from the Tar Sands will be uneconomic. Otherwise with the increased emissions our planet will be damaged more than 1.2 trillion could ever fix.

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